Core Insights - Credo Technology's stock surged over 16% pre-market and over 24% post-market due to strong Q2 2026 revenue performance, achieving $268 million, a 20.2% quarter-over-quarter increase and a 272.1% year-over-year increase, marking the company's best quarterly performance in history [4] - The company is a leader in the Active Copper Cable (AEC) sector, having pioneered the technology and standards, and dominates the AI data center high-speed interconnect market [4] - AEC products are expected to replace Direct Attach Copper (DAC) and Active Optical Cable (AOC) solutions, with significant growth anticipated in companies involved in AEC as data centers adopt this model [4] Company Summaries 1. Zhaolong Interconnect - Core highlight: Leading in high-speed cables and a full member of the China Communications Standards Association [6] - AEC products: The company has begun mass delivery of its 112G AEC products and has 800G copper cable products [7] - Performance: Revenue of 1.52 billion yuan, up 13.3% year-over-year; net profit of 138 million yuan, up 53.8% year-over-year [9] 2. Xinke Materials - Core highlight: Leading in high-end copper strip processing and sales in China [10] - AEC products: Investing 67.4 million yuan to build production lines for 800G and 1.6T high-speed copper connections, expected to generate 542 million yuan in annual sales [10] 3. Ruikeda - Core highlight: Leading in RF connectors for 5G base stations [12] - AEC products: Currently advancing AEC112G and 224G projects, with smooth progress in product development and customer certification [12] - Performance: Revenue of 2.321 billion yuan, up 46.04% year-over-year; net profit of 233 million yuan, up 119.89% year-over-year [13] 4. Wolker Materials - Core highlight: Leading in nuclear radiation-modified electronic materials and high-speed communication cables [14] - AEC products: Mass production of AEC-specific high-speed core wires, supplying major international clients [14] - Performance: Revenue of 6.082 billion yuan, up 26.17% year-over-year; net profit of 822 million yuan, up 25.45% year-over-year [17] 5. Changxin Bochuang - Core highlight: Leading in optical communication integrated optoelectronic devices [18] - AEC products: 800G high-speed active copper cables are in customer testing and certification [18] - Performance: Revenue of 1.794 billion yuan, up 45.41% year-over-year; net profit of 250 million yuan, up 566.59% year-over-year [18] 6. Changfei Fiber - Core highlight: Leading in the optical fiber and cable industry [20] - AEC products: 800G high-speed active copper cables are in customer testing and certification [20] - Performance: Revenue of 10.275 billion yuan, up 18.18% year-over-year; net profit of 470 million yuan, down 18.02% year-over-year [20] 7. Luxiao Technology - Core highlight: Major provider of copper and aluminum wire products and services [22] - AEC products: The company has a stake in a company producing AEC products [22] 8. Huilv Ecology - Core highlight: Dual-driven by landscaping and optical communication businesses [24] - AEC products: Mass production of 800G DAC and AEC series products, with new production lines planned [24] - Performance: Revenue of 1.081 billion yuan, up 206.15% year-over-year; net profit of 51.718 million yuan, up 96.96% year-over-year [26]

Group 1 - The article highlights the strong quarterly performance of Credo, an AEC company, which saw a stock increase of over 10% on the 2nd, following a cash and stock acquisition of Celestial AI for approximately $3.25 billion, focusing on photonic interconnects [1] - AEC (Active Electrical Cable) includes components such as copper cables, connectors, Retimer chips, and PCBs, with Retimer chips amplifying signals to extend copper cable connection distances [1] - AOC (Active Optical Cable) consists of optical modules and fiber cables for high-speed signal transmission, differing from DAC (Direct Attach Copper) in terms of power consumption and distance capabilities [1] Group 2 - Companies involved in AEC include XinKe Materials, which has a market cap of 7.387 billion and is producing 240,000 high-speed copper connections for 800G and 1.6T [2] - Huilv Ecology, with a market cap of 11.184 billion, has launched AEC series products with mass production capabilities [2] - Zhaolong Interconnect, valued at 14.297 billion, is a leader in high-speed cables, delivering single-channel 112G AEC solutions [2] Group 3 - Companies in the AOC sector include Longfly Fiber, with a market cap of 45.193 billion, currently in the trial certification phase for AOC products [3] - Huagong Technology, valued at 75.253 billion, has achieved bulk delivery of 200G AOC products [4] - New Yisheng, with a market cap of 334.244 billion, has released 800G AOC products [4]